AMBFF II Ext III

Location:

Armenia

Project number:

42716

Business sector:

Depository Credit (banks)

Notice type:

Private

Environmental category:

FI

Approval date:

04 May 2011

Status:

Completed

PSD disclosed:

25 Mar 2011

Translated version of this PSD: Armenian

Project Description

The Armenia Multi-Bank Framework Facility II (AMBFF II) established to provide loans and equity to commercial banks and non bank financial institutions in Armenia, was originally approved by in 2006 for an amount of US$ 40 million. Based on its success it was extended twice for US$ 80 million in November 2007 and for an additional US$ 100 million in December 2009. The funds were utilised in over 25 loans to 14 partner institutions.


The EBRD is now considering a further US$ 100 million extension to AMBFF II to continue supporting the development of the Armenian banking sector and its recovery after the financial crisis. The Facility will seek to develop new products for financial institutions, promote loans in local currency and attract syndication partners. Transactions will be accompanied by TC on an as-needed basis.

Transition Impact

Transition impact of the third extension of the Facility II will arise through further market expansion which will be achieved by providing medium and long term financing through selected partner banks and other financial institutions to accelerate and expand their lending, including in economically less developed regions and for specific sectors and purposes (e.g., agriculture). Subject to market conditions, the Bank will endeavour to maximize the extent to which these operations are undertaken through local currency loans and/or syndicated facilities.

The proposed extension is also an important continuation of the Bank’s engagement with financial institutions in Armenia, it will sustain and reinforce the transition impact achieved through the Facility operations up till now. Transactions will be accompanied by TC on an as-needed basis.

The Client

Existing Partner Bank (PBs) under AMBFF II and new partner financial intermediaries, including banks and other FIs.

EBRD Finance

US$ 100 million.

Separate loan and equity agreements to be entered into by the Bank with the existing and new partner FIs, with amounts determined on a case-by-case basis.

Project Cost

N/A

Environmental Impact

The participating banks will conduct their business in compliance with the EBRD Performance Requirement 2 Labour and Working Conditions and comply with EBRD’s Performance Requirement 9 Financial Intermediaries in their sub-lending. These include compliance with applicable national environmental, health and safety legislation, adherence to the Environmental Exclusion List, submission of Annual Report on the implementation of PRs 1 and 9 and any environmental and social issues related to sub-lending, and nomination of a senior staff member in charge of the environmental issues.

Technical Cooperation

Over the years the Facility II has been supported by comprehensive TC packages, including through the Armenia Microlending Programme financed by USAID, the Bank’s ETC Multi-Donor Fund and Special Shareholders fund (US$ 1.86 million, extended by further € 1.5 million); TC for the first mortgage line (€ 150,000) financed by ETC Multi Donor Fund; €0.9 million through ETC Multi-Donor Fund and Special Shareholders’ Fund to support participants on a case-by-case basis to improve delivery efficiencies and introduce new products; Credit Advisory Services and Institutional Building TC for SME financed by the ETC Multi-Donor Fund (€ 350,000, extended by further € 350,000).
Above TA has had a significant impact on the development of the sector through assisting in institutional building of local banks, providing know-how in loan appraisal and credit approval processes, strengthening credit departments and developing and improving internal credit polices and procedures.


Armenia Microlending Programme is active and available for new projects. Further TC could be considered on an as-needed basis, particular in developing new products such as agri loans or underdeveloped mortgage lending.

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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